The California State Senate today approved Senate Bill 934 by Senator Patricia Bates (R-Laguna Niguel) that would eliminate filing fees for non-profit organizations applying for a state tax exemption. Senator Bates authored SB 934 in partnership with the Franchise Tax Board (FTB).
“SB 934 will help non-profits save money, reduce paperwork, and make more efficient use of state resources,” said Senator Bates. “The Legislature should allow FTB to devote additional resources on more urgent matters, such as processing tax refunds for families.”
SB 934 eliminates the $25 filing fee paid to the FTB by non-profit organizations applying for a state tax exemption. It also removes the $10 filing fee for annual informational returns paid to the FTB by specified tax-exempt organizations as well as a $25 late fee. According to the FTB, it costs more for it to collect these fees from the nonprofits than the amount of money they bring in to the state. The FTB believes the bill will help improve operational efficiency and enable the agency to focus on more pressing priorities.
SB 934 will now head to the Assembly for its consideration.